PrecisionLender allows users with the administrative rights to edit products to modify the Loss Given Default Calculation Method. We offer two methods of calculating Loss Given Default; Collateral and Guarantees, or Facility Ratings. Some of our clients prefer to consider the value of collateral and guarantees individually, while others have developed a Facility Ratings system. If you prefer to measure collateral and guarantees separately, visit Setting Up Collateral. If your bank uses Facility Ratings, this article will show you how to set them up.
Facility Ratings allow you to enter specific tiers of LGD for your lenders or RMs to choose from, instead of allowing PrecisionLender to calculate your LGD from your collateral and guarantees. For help on adding Facility Ratings to an opportunity, visit Using Facility Ratings.
Setting up Facility Ratings
You can add, edit, or enable Facility Ratings on the Product Edit Screen. From the Products Pane of the Administration Section, click on the name of the product that you wish to add or edit Facility Ratings types for. Click Edit in the upper left corner, and scroll down to the Credit Configuration & Assumptions section.
You can use the trash can icon () to delete a Facility Rating, and the arrow icons to move a Facility Rating up or down in the list. To add a new Facility Rating, click the blue Add New Facility Rating button on the right side of the page.
Loss Given Default Calculation Method
- This drop-down allows you to choose whether to use Facility Ratings or Collateral to calculate your LGD.
- If checked, this will be the Facility Rating selected by default for this product when a lender or RM creates a new loan.
- Name that will display for lenders or RMs and be used to identify this rating.
Loss Given Default
- The Loss Given Default assigned to this Facility Rating